CipherTrace

Virtual currencies such as Bitcoin are processing billions of dollars per year of criminal transactions. Despite the many legitmate uses for virtual currencies, criminals are increasingly capitalizing on the decentralization and anonymity afforded by exchanges that leverage blockchain platforms.

KEY CAPABILITIES

Provides a case management capability to cross link investigations into a single case for correlation and reduction in time and resource

Detects cryptographic currency laundering services

Assists in de-anonymization of cryptocurrency transactions

Provides attribution of transactions and identifies currency exchanges that can be subjected to subpoena

Develops regulations and compliance programs

APPLICATIONS

Forensics

CipherTrace provides Bitcoin and blockchain analysis, security, forensics and investigation tools for law enforcement, intelligence collection and analysis, and financial services to investigate addresses, transactions and currency flows. These capabilities enable law enforcement agents and intelligence analysts to get their jobs done faster and more accurately.

Evidence & Investigations

CipherTrace works with law enforcement and the U. S. Intelligence Community to provide
evidence, actionable leads, and expert witness services in Bitcoin and other cryptocurrency investigations. CipherTrace’s solution can be leveraged during counterintelligence investigations to track the clandestine movement of money by hostile foreign intelligence services.

Research & Development

CipherTrace provides research and development services for the U.S. and foreign governments, law enforcement, and the financial services industry. CipherTrace works side by side with some of the world’s leading laboratories to co-develop machine learning, blockchain security
technologies, and related capabilities.

CipherTrace automatically searches through thousands of ransomware payoffs to determine where money is flowing and map common addresses, wallets, and exchangers. The view presented below depicts 88 victim payoffs. CipherTrace visualizes the illicit funds’ path as they flow through several addresses and, ultimately, into an exchanger for cashout by criminals.

DEEP AUTOMATED RESEARCH YIELDS THE ABILITY TO TRACK HOW RANSOM FUNDS ARE DISTRIBUTED, SOME AS PAYOFFS TO AFFILIATES

The address depicted, 1Ey4xu, has large amounts of funds flowing to it. While analysts initially assumed that sophisticated ransomware criminals would leverage different addresses at their exchanger, this visualization reveals that they funnel funds through several addresses. This address alone has received 3,000 Bitcoins from ransomware in only three weeks.

The Problem

Nature of anonymized transactions and growth in virtual currencies has motivated illicit criminal activity through virtual exchanges, such as: